Ocado's shares jump after customer numbers increase 12%

LONDON — Ocado’s shares jumped on Wednesday morning despite a drop in half-year profits, after reporting an increase
in customers.

Ocado’s profit before tax in the first six months of 2017 was down £1.7 million, due in part to the costs associated with opening new facilities to “meet increasing demand,” such as the distribution centre in Andover.

“After several years of price deflation in the UK, we have seen this begin to ease in the period and, when combined with our increasing scale and operational efficiencies, this trend will support the continued profitable growth of our retail business,” said Tim Steiner, CEO of Ocado.

“As the channel shift to online advances we continue to gain share in a competitive UK market. We expect the trend for grocery shopping online to continue as customers become more tech savvy and gain confidence in the online services available,” he said.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.